: Direct Materials Variances P2 A manufacturing company reports the following for one of its products. Compute the direct materials (a) price variance and (b) quantity variance and indicate whether they are favorable or unfavorable. Direct materials standard Actual direct materials used Actual finished units produced 8 pounds at $6 per pound 83,000 pounds @ $5.80 per pound 10.000 .... Price Variance Quantity. Verence